Tax payment dates

The timetable of tax payments is relatively straightforward for the self-employed.

• 31 January in the tax year, first payment on account
• 31 July after the tax year, second payment on account
• 31 January after the tax year, balancing payment

There is also a system of interest and surcharges to encourage prompt payment.

For example, if you do not make your full 2009/10 balancing payment by 28 February 2011, HMRC will add a 5% surcharge as well as the interest that will be charged from 1 February 2011. Delay until after 31 July 2011, and a further 5% surcharge in addition to the interest will be added. In addition interest is charged on outstanding surcharges, as well as on unpaid tax and NICs.

If you have incorporated your business the company will be paying corporation tax. Corporation tax is normally payable nine months and one day after the end of the accounting period.

If cash flow is tight, HMRC could be persuaded to accept a spreading of your next business tax payment – you will have to pay interest at the HMRC rate, but keep to the agreed schedule and surcharges will be waived. Arrangements need to be put in place before the due date for paying the tax, so talk to us in good time if you need or wish to apply.